Gold is looking to push higher towards $1835 and $1865 levels in the next few weeks before finding resistance again. The yellow metal might have carved a meaningful higher low around $1721 on September 29 and has turned higher thereafter.
Gold has carved a classic Elliott Wave pattern at two different degrees since $1677 lows. The metal has produced a 5-3 pattern marked as (a) and (b) around $1834 and $1721 respectively. Furthermore it has carved wave I and ii around $1770 and $1745 levels.
It could be seen as a classic example of the fractal nature of markets. If the above is correct, the next move should be 5 waves, which is Wave (c) at a higher degree, and terminate above $1834 mark. Also, prices should stay above $1721, to keep the above structure intact.
Once the above (a)-(b)-(c) corrective zigzag structure is complete, Gold is expected to turn lower towards $1450 levels, to continue its potential diagonal structure at one larger degree. For now, immediate resistance is seen around $1786 mark and a push higher would bring bulls back in control.
Traders might be preparing to initiate fresh long positions around $1740-55 zone, with potential risk below $1721 and target above $1834 levels respectively.
The Profinacademy.com Team
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.